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LTC 396-2022 Fiscal Year 2022 Third Quarter Analysis396-2022 MIAMI BEACH OFFICE OF THE CITY MANAGER LTC NO. LETTER TO COMMISSION TO: FROM: DATE: Honorable Mayor Dan Gelber and Members of the City Commission Alina T. Hudak, City Mana~ September 21, 2022 L, SUBJECT: Fiscal Year 2022 Third Quarter Analysis The purpose of this Letter to Commission (L TC) is to provide the Mayor and City Commission with the status of the Fiscal Year (FY) 2022 operating budget to actual revenues and expenses as of the third quarter ending June 30, 2022, with projections through fiscal year-end September 30, 2022, as set forth in the City's Charter which specifies that "the City Manager shall make public a quarterly report showing the actual expenditures during the quarter just ended against one quarter of the proposed annual expenditures set forth in the budget." It is important to note that certain assumptions for both revenues and expenditures have been made in these projections that will continue to be refined and adjusted as additional data and information becomes available. SUMMARY The FY 2022 budget was adopted to assume a cautiously optimistic rebound in revenues due to the impact of COVID-19 on the City's operations. Based on revenues in the General Fund and Resort Tax Fund trending higher than originally anticipated as of the third quarter of FY 2022, revenues and expenditures as of June 30, 2022, with projections through September 30, 2022, reflect a projected year-end surplus of $19 .9 million in the General Fund and $19.8 million in the Resort Tax Fund, which is an increase from the surplus projected as of the second quarter of FY 2022 of $13.5 million and $15.3 million in the General Fund and Resort Tax Fund, respectively. Based on the preliminary General Fund revenues and expenditures as of June 30, 2022, with projections through September 30, 2022, it is estimated that the General Fund year-end surplus will be $19.9 million . As recommended by the Administration and accepted by the City Commission at the September 14, 2022 City Commission meeting, this projected year-end surplus is proposed to be set aside and/or allocated as follows: 1) $7. 7 million towards the General Fund Reserve policy target amount of 3 months, or 25%, adopted by Resolution No. 2019-30954 2) $7.6 million to fund anticipated Capital Project gaps 3) $1.3 million to fund a 2% Cost of Living Adjustment (COLA) proposed in FY 2022 for all employees, effective April 2022 4) $1.7 .,million to fund the proposed repayment of furloughs that were taken by employees during FY 2020 and FY 2021 due to the impact of COVID-19 on the City's operations 5) $1 .6 million to fund the one-time expenditure enhancements recommended for FY 2023 Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 2 of 17 Similarly, based on the preliminary Resort Tax revenues and expenditures as of June 30, 2022, with projections through September 30, 2022, it is estimated that the Resort Tax year-end surplus will be $19.8 million. As recommended by the Administration and accepted by the City Commission at the September 14, 2022 City Commission meeting, this projected year-end surplus is proposed to be set aside and/or allocated as follows : 1) $5.4 million towards the Resort Tax Reserve policy target amount of 6 months, or 50%, adopted by Resolution No. 2019-30664 2) $3.2 million for FY 2023 Spring Break Programming, as discussed and proposed during the development of the FY 2023 budget 3) $10.4 million to fund anticipated Capital Project gaps 4) $0 .8 million to fund the one-time expenditure enhancements recommended for FY 2023 USE OF RESERVES Should the General Fund items summarized above be approved, as recommended by the City Administration, the projected FY 2022 General Fund reserve would total approximately $90.2 million, or 25.5%, which equals approximately 3.1 months of reserves based on the adopted FY 2022 General Fund budget of $354.1 million. The current reserve policy for the General Fund is a required 2 months, with a goal of 3 months, which totals $88.5 million based on the current adopted FY 2022 General Fund budget of $354 .1 million. GENERAL FUND Q 1 Q 2 Q3 Reserve Reserve Reserve Reserve as of 9/30/2021 $87.5 million $94.8 million $94.8 million FY 2022 Budget Amendments (1 st and 2nd Operating Amendments) ($9 .9 million) ($9 .9 million) ($9.9 million) 72nd Street Project Contribution ($3.5 million) ($3 .5 million) ($3 .5 million ) Additional FEMA Reimbursement for Hurricane Irma $1.0 million $1.2 million $1 .2 million Additional General Fund Revenues Projected as of Q1/Q2/Q3 $5.1 million $15.8 million $22 .1 million Parking Contribution for 500 Alton Road Project ($0 .6 million) ($0 .6 million) ($0.6 million) Parking Contribution for Ocean Terrace Project ($0 .3 million) ($0 .3 million) ($0.3 million) Matrix Staffing Report Recommendations (3 Positions in Police) ($0 .2 mil lion) ($0 .2 million) ($0.2 million) Additional Police Positions (2 New Positions+ 1 Reclassification) ($0 .2 million) ($0 .2 million) ($0.2 million) Resilient Florida Funding Grant Match ($0.1 million) ($0 .1 million) ($0.1 million) Housing Relocation from 555 Building to 1701 Meridian ($0.3 million) ($0 .3 million) Lighting on Meridian Avenue in Flamingo Park District ($0 .2 million) ($0.2 million) Municipal Prosecution Program ($0 .2 million) ($0 .2 million) Justice Advocate Program ($0 .1 million) ($0 .1 million) Diversity Program ($0 .1 million) ($0 .1 million) Set Aside/Allocation for Anticipated Capital Project Gaps ($7 .6 million) ($7.6 million) Proposed COLA (2% Recurring effective April 2022) ($1.3 million) Proposed Furlough Repayment ($1 .7 million) Proposed One-Time Enhancements Recommended for FY 2023 ($1.6 million) Projected FY 2022 Reserve $78.8 million $88.5 million $90.2 million Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 3 of 17 For Resort Tax, if the items summarized above are approved, as recommended by the City Administration, the projected Resort Tax reserve would total approximately $28.5 million, or 49.8%, which equals approximately 6 months of reserves based on the adopted FY 2022 2% Resort Tax Fund budget of $57.2 million. The current reserve policy for the 2% Resort Tax Fund is a minimum of 3 months, with a goal of 6 months, which totals $28.6 million based on the current adopted FY 2022 2% Resort Tax Fund budget of $57.2 million. 2% RESORT TAX FUND R Q 1 R Q 2 R 0 3 eserve eserve eserve Reserve as of 9/30/2021 $29.9 million $29.9 million $29.9 million FY 2022 Budget Amendments (Pt and 2nd Operating Amendments) ($0.9 million) ($0 .9 million) ($0.9 million) 72nd Street Project Contribution ($5 .9 million) ($5 .9 million) ($5 .9 million) Additional Resort Tax Revenues Projected as of Q1/Q2/Q3 $6 .5 million $19 .1 million $23.6 million Washington Avenue Milling and Resurfacing Project ($1 .6 million) ($1 .6 million) ($1.6 million) Additional Police High Impact -Spring Break ($0.7 million) ($0 .7 million) ($0.7 million) Ocean Drive Reconfiguration ($0 .6 million) ($0.6 million) ($0.6 million) Holiday Lighting Expansion in North Beach ($0.3 million) ($0.3 million) ($0.3 million) SOBE WFF Cash Sponsorship for City Services ($0.2 million) ($0.2 million) ($0.2 million) Washington Avenue Restriping ($0.1 million) ($0 .1 million) ($0 .1 million) Miami Beach Live -Spring Break ($0.1 million) ($0.1 million) ($0.1 million) FTX Sponsorship ($0.2 million) ($0.2 million) Set Aside for FY 2023 Spring Break Programming ($3 .2 million) ($3.2 million) Set Aside/Allocation for Anticipated Capital Project Gaps ($6.6 million) ($10.4 million) Proposed One-Time Enhancements Recommended for FY 2023 ($0.8 million) Projected FY 2022 Reserve $26.0 million $28.6 million $28.5 million All General Fund, Enterprise Funds, Internal Services Funds, and Special Revenue Funds budgets are projected to be at or below their current FY 2022 amended budgets as of year-end with revenues projected to be equivalent to or in excess of expenditures, except for the Convention Center Enterprise Fund, as well as the Red Light Camera, 5th & Alton Garage, Normandy Shores, and Biscayne Point and Biscayne Beach Special Taxing Districts Special Revenue Funds that are detailed further in this analysis. AMERICAN RESCUE PLAN ACT FUNDS The American Rescue Plan Act of 2021 (ARPA) is an emergency legislative package intended to "fund vaccinations, provide direct relief to families bearing the brunt of the COVID-19 crisis, and support struggling communities." The bill provides a total of $1.9 trillion to governments and other entities such as hospitals, public schools, and universities to promote recovery from the COVID- 19 pandemic. Signed into law by President Biden on March 11, 2021, the bill allocated $350 billion in fiscal recovery funds to State, Local, Tribal, and Territorial (SL TT) Governments, of which $45.6 billion was allocated for metropolitan cities, such as the City of Miami Beach, to: Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 4 of 17 • Respond to the COVID-19 public health emergency or its negative economic impacts including (but not limited to): assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality • Provide premium pay to eligible State workers, or grants to eligible employers with employees that perform essential work during the COVID-19 public health emergency • Provide government services to compensate for the reduction in revenue in the community due to the pandemic (budget shortfalls) • Make necessary investments in water, sewer, or broadband infrastructure The City of Miami Beach received an allocation of approximately $23.6 million in one-time federal dollars to address the revenue shortfalls attributed to COVID-19, which the City Commission approved to be used to balance the projected shortfall attributed to COVID-19 in the FY 2022 budget approved on September 30, 2021, through Resolution No . 2021-31872 . To date, the City's full allocation of approximately $23 .6 million has been received. ANALYSIS Similar to the balancing plans that the City Administration implemented for FY 2020 and FY 2021 due to the impact of COVID-19 on the City's operations, the FY 2022 budgets included assumptions based on the expectation of conservative economic activity with gradual growth thereafter. The keys to balancing the budgets for FY 2022 were: (1) reducing non-essential costs as much as possible; (2) allocating ARPA funds received by the City totaling $23.6 million from the federal government to mitigate the projected ongoing revenue loss attributed to COVID-19; and (3) judiciously using the City's reserves to make up the difference. GENERAL FUND Third Quarter Status An analysis of the actual nine-month operating revenues and expenses for the period October 1, 2021 through June 30, 2022 reveals an operating budget surplus of $84.5 million . While the actual surplus as of June 30, 2022 may seem unusual when compared to the projection for the current fiscal year ending September 30, 2022, it should be noted that the City receives a large percentage of its annual ad valorem property tax revenues during the early months of the fiscal year. Ad valorem property tax revenues represent approximately 56.4% of total budgeted revenues adopted for FY 2022 and 59.5% of actual revenues collected during the first nine months of FY 2022. As of June 30, 2022, total revenues collected were approximately 88.4% of the current FY 2022 amended budget, or $323. 7 million. Conversely, expenditures were approximately 65.3% of the current FY 2022 amended budget, or $239.2 million. It is important to note that there are often delays in expenditures until the close of the fiscal year. FY 2022 Budget 3/4 of Amended Actuals as of Variance from 3/4 General Fund Adopted Budget Amended Budget Budget 06/30/22 Amended Budget O1.€r I (Under) Rel.€nues $ 354,106 ,000 $ 366 ,276 ,000 $ 274 ,707,000 $ 323 ,742,437 $ 49,035,437 E x penditures $ 354,106 ,000 $ 366 ,276 ,000 $ 274 ,707 ,000 $ 239 ,213 ,788 $ (35,493 ,212) Excess of Revenues Over/(Under) Expenditures $ 84,528,649 Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 5 of 17 Year-End Projections Year-end operating revenues and expenditures projected through September 30, 2022 provide a more realistic indication of any estimated year-end surpluses or shortfalls as of this point in time. While actual revenues and expenses reflected in this analysis are as of June 30, 2022, these projections incorporate more current information that may be available . In addition, these projections assume the use of $23.6 million in American Rescue Plan Act (ARPA) funds allocated and received by the City from the federal government. A summary of the preliminary General Fund revenues and expenditures as of June 30, 2022, with projections through September 30, 2022, reflects a projected year-end surplus of $19.9 million, which is an increase of $6.4 million from the $13.5 million surplus projected as of the second quarter of the fiscal year, which the City Administration is recommending be set aside and/or allocated as follows: FY 2022 Budget General Fund Adopted Budget Amended Budget Projected Difference % O-..er I (Under) Re-..enues $ 354 ,106,000 $ 366 ,276 ,000 $ 380 ,760,000 $ 14,484,000 4.0% Expenditures $ 354 ,106,000 $ 366,276 ,000 $ 360 ,903,000 $ (5 ,373 ,000) -1 .5% Excess of Revenues Over/(Under) Expenditures $ 19,857,000 5.4% 1) $7.7 million towards the General Fund Reserve policy target amount of 3 months , or 25%, adopted by Resolution No. 2019-30954 2) $7.6 million to fund anticipated Capital Project gaps 3) $1.3 million to fund a 2% Cost of Living Adjustment (COLA) proposed in FY 2022 for all employees, effective April 2022 4) $1.7 million to fund the proposed repayment of furloughs that were taken by employees during FY 2020 and FY 2021 due to the impact of COVID-19 on the City's operations 5) $1.6 million to fund the one-time expenditure enhancements recommended for FY 2023 Operating Revenues Property tax collections for FY 2022 are being projected at 95.0% of total property taxes assessed, which is consistent with the original adopted budget thus allowing for discounts and a level of adjustment for appeals that is consistent with historical levels . The impact of these appeals and adjustments realized for FY 2022 were received in July 2022 when the City received its certified property values from the Miami-Dade County Property Appraiser for the upcoming fiscal year. As of June 30, 2022, actual operating revenues collected were approximately 88.4% of the current amended budget, or $323. 7 million, with operating revenues through fiscal year-end September 30, 2022 projected at $380.8 million, which is approximately 4.0%, or $14 .5 million, above the current amended budget. As previously mentioned, these projections are not only based on experience during the first nine months of the fiscal year, but also other more current information available, as well as the use of the approximately $23.6 million of ARPA funds allocated and received by the City from the federal government. Revenue categories with significant variances to budget in excess of 10.0%, or $300,000, are further explained below: Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 6 of 17 Other Taxes -This category includes franchise taxes for gas and electric, as well as utility taxes for telephone , electricity, and gas and is projected to be above the current amended budget by 5.9%, or $1.4 million, primarily due to franchise and utility taxes for electricity, gas , and telephone trending higher than originally anticipated based on current economic activity. Licenses and Permits -This category includes business tax receipts, licenses/special use permits, and sidewalk cafe fee revenues and is projected to be above the current amended budget by 33.5%, or $5 .3 million, primarily due to increased fire, planning, and public works plans review services and permit revenues, as well as business tax receipt and sidewalk cafe permit revenues, resulting from increased real estate , economic development, and tourism activity. It is important to note that of the additional $5.3 million projected, $875,000 is attributed to permit-related revenues collected earlier in the fiscal year for the 500 Alton Road Project. Intergovernmental -This category includes local option gas tax, motor fuel tax, sales tax proceeds, and half-cent sales tax proceeds received from Miami-Dade County and the State of Florida and is projected to be 15. 7%, or $1.9 million, above the current amended budget primarily due to sales tax and half-cent sales tax collections trending higher than originally anticipated based on current economic and tourism-related activity. Charges for Services -This category includes revenues from activities and programs offered by the Parks and Recreation Department such as after school and summer classes , as well as the operations of the Miami Beach and Normandy Shores golf courses, public safety, passport, ambulance/rescue, and lot clearing services, and is projected to be above the current amended budget by 17 .3%, or $2.3 million, primarily due to golf course operations at both the Miami Beach and Normandy Shores golf courses trending higher than originally anticipated based on current economic activity. Interest -This category is comprised of various sources of interest income derived from the City 's current investments and is projected to be 45.0%, or $1.4 million, above the current amended budget due to higher than anticipated interest rates . Rents and Leases -This category includes revenues from various rentals and leases of City owned properties. FY 2022 collections are projected to be 12 .0%, or $755,000, above the current amended budget primarily due to revenues from several of the City's leases, including the Miami Beach Marina , trending higher than budgeted since revenues collected by the City for some of its leases and rentals are based on a percentage of the tenants ' sales . Miscellaneous -This category includes revenues from various categories such as concessions , reimbursements , and other revenue categories including beach access fees and advertising. Projected FY 2022 revenues are 9. 7%, or $1.4 million, above the current amended budget primarily due to revenues from lien statement services and planning design after hours review fees trending higher than budgeted as a result of increased real estate and development activity. For a detail of General Fund revenues by category, refer to the attached Exhibit A. Operating Expenditures As of June 30, 2022, actual expenses were approximately 65.3% of the current amended budget, or $239.2 million, with operating expenditures through fiscal year-end September 30, 2022 Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 7 of 17 projected at $360.9 million, which is approximately 1.5%, or $5.4 million, below the current amended budget. As previously mentioned, these projections are not only based on experience during the first nine months of the fiscal year, but also more current information available . General Fund expenditures by department projected to exceed budget or with significant variances to budget in excess of 10.0%, or $300,000, are further explained below: City Attorney -The department is projected to be below the current amended budget by 5.9%, or $392,000, primarily due to projected savings in personnel services expenditures resulting from several full-time budgeted positions that have been and/or remain vacant in the current fiscal year that the City Attorney's Office is in the process of trying to fill with qualified candidates based on current needs. City Attorney FY 2022 FY 2022 Projected vs Amended Budget Projected Amended % O1.€r I (Under) Budget Variance Expenditures $ 6,603,000 $ 6,211,000 $ (392,000) -5.9% Housing and Community Services -The department is projected to be below the current amended budget by 10.4%, or $424,000, primarily due to projected savings in personnel services expenditures resulting from full-time and part-time budgeted positions that have been and/or remain vacant in the current fiscal year in the Homeless division that have been difficult to fill due to the nature of the work involved . Housing and Community Services FY 2022 FY 2022 Projected vs Amended Budget Projected Amended % O1.€r I (Under) Budget Variance Expenditures $ 4,075,000 $ 3,651 ,000 $ (424,000) -10.4% Parks and Recreation -The department is projected to be 2.4%, or $945,000, below the current amended budget primarily due to projected savings in personnel services expenditures resulting from numerous full-time and part-time budgeted positions that have been and/or remain vacant in the current fiscal year. The volume of candidates that are interested and qualified has been very limited; therefore, the department has been unable to fill some of these budgeted positions . Parks and Recreation FY 2022 FY 2022 Projected vs Amended Budget Projected Amended % O1.€r I (Under) Budget Variance Expenditures $ 39,057,000 $ 38,112,000 $ (945,000) -2.4% Public Works -The department is projected to be below the current amended budget by 4.5%, or $689,000, resulting from projected savings in personnel services expenditures due to numerous budgeted full-time vacancies within the department's Engineering, Streets and Street Lighting, and Greenspace Management divisions. The department has been attempting to fill these budgeted positions; however, the volume of candidates who are interested and qualified for some of these positions has been very limited . Additional savings are also projected in operating and capital expenditures due to delays in the department receiving Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 8 of 17 parts and equipment stemming from supply chain issues. Public Works FY 2022 FY 2022 Amended Budget Projected Expenditures $ 15,222,000 $ 14,533,000 Projected vs Amended % O1.€r I (Under) Budget Variance $ (689,000) -4.5% Capital Improvement Projects (CIP) -The department is projected to be 5.6%, or $329,000, below the current amended budget primarily due to projected savings in personnel services expenditures resulting from several budgeted full-time position vacancies that the department has been unable to fill or is in the process of filling based on the current needs of the department. The department has been attempting to fill these budgeted positions; however, the volume of candidates that are interested and qualified has been very limited. Expenditures FY 2022 Amended Budget $ 5,840,000 $ FY 2022 Projected Projected vs Amended Budget Variance 5,511,000 $ (329,000) % O1.€r I (Under) -5.6% Police -The department is projected to be 0.4%, or $440,000, below the current amended budget primarily due to projected savings in personnel services expenditures resulting from numerous positions (sworn and non-sworn) that the department has been unable to fill or is in the process of filling . Additional savings are also projected in operating expenditures based on the department's current operational needs. Police FY 2022 FY 2022 Projected vs Amended Budget Projected Amended % O1.€r I (Under) Budget Variance Expenditures $ 124,836,000 $ 124,396,000 $ (440 ,000) -0.4% While the above-listed General Fund departments comprise those with significant variances to budget in excess of 10.0%, or $300,000, all other General Fund departments are projected to have savings at year-end. For a detail of General Fund expenditures by department, refer to the attached Exhibit A. ENTERPRISE FUNDS The City accounts for those goods and services provided by a particular department to external users for which a fee is charged as Enterprise Funds . The City's Sanitation, Water, Storm Water, Sewer, Parking, Convention Center, and Building operations comprise this category of Proprietary Funds. An analysis of the actual nine-month operating expenses for the period October 1, 2021 through June 30, 2022, reveals that all Enterprise Funds have actual expenses that are less than three quarters of their current amended budgets. It is important to note that this is not representative of typical trends for a full fiscal year, as there is often a lag in the processing of expenditures, particularly those billed by outside entities for services provided . Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 9 of 17 NTERPRISE FUNDS Sanitation se-r Storm water FY 2022 Adopted Budget 22 ,170,000 52 ,916,000 31 ,911,000 Budget Amendment -10/13/21 0 0 0 Budget Amendment -11/22/21 1,1 30 ,000 2,321 ,000 1,952,000 Bud et Amendment -03 /09/22 0 0 0 FY 2022 Amended Bud et 23 ,300 ,000 55,237 ,000 33 ,863 ,000 3/4 Adopted Budget 16,627,500 39,687,000 23,933 ,250 3/4 Amended Bud et 17 ,475 ,000 41 ,427,750 25 ,397 ,250 Revenues as of 06/30/22 15,924,256 41 ,793 ,247 23,450 ,549 Ex enditures as of 06/30/22 15,941,217 34 ,790,669 16 ,063 ,254 Expenditures .Abovel(Below) 314 Amended Budget (1 ,533,783) (6 ,637 ,081) (9 ,333 ,996) % Variance -6 .6% -12.0% -27 .6% Water Parking Building Convention Center 35 ,032 ,000 43,477,000 17 ,449 ,000 27 ,332 ,000 0 0 0 0 3,494 ,000 681 ,000 7,000 1,228 ,000 0 0 0 0 38 ,526 ,000 44 ,158 ,000 17,456,000 28 ,560 ,000 26,274 ,000 32 ,607 ,750 13,086 ,750 20 ,499 ,000 28 ,894,500 33 ,118 ,500 13,092 ,000 21,420 ,000 26,317,372 34,592,199 13,992,619 8,765,415 23,071,857 23,638,150 11,451 ,813 10,185,198 (5 ,822 ,643) (9,480 ,350) (1,640 ,187) (11 ,234,802 ) -15 .1% -21 .5% -9.4 % -39 .3% Year-end operating revenue and expenditure projections through September 30, 2022 provide a more realistic indication of any anticipated year-end surpluses or shortfalls as of this point in time. While the actual revenues and expenses presented above are as of June 30, 2022, the year-end projections incorporate more current information available. Revenues for all Enterprise Funds are projected to be equivalent to or in excess of expenditures as of year-end. In addition, all Enterprise Fund budgets are projected to be under their current amended budgets, except for the Convention Center Fund. Enterprise Fund budgets projected to exceed their current amended budgets or with significant variances to budget in excess of 10.0%, or $300,000, are further explained below: Convention Center -The Convention Center Fund budget is projected to be above the current budget by approximately $2.0 million, or 7.1 %, primarily due to an increase in the number of events (9) that have been or are scheduled to be held this fiscal year compared to the 50 events originally anticipated for FY 2022 when the budget was developed, as well as increased activity during these events. Although expenditures are projected to exceed the current budget, revenues are projected to exceed expenditures resulting in a projected surplus of approximately $14.6 million that would be available to be set aside for renewal and replacement of Convention Center assets and/or future operating and other expenditure obligations should these projections be realized at year-end. This projected surplus is primarily attributed to a Convention Development Tax (CDT) bonus of $13.1 million anticipated to be received by the City for FY 2022 based on increased Convention Development Tax receipts collected by Miami-Dade County in the current fiscal year from which a portion is to be remitted to the City in accordance with the Amended lnterlocal Cooperation Agreement that was approved by the City Commission on November 19, 2014 through Resolution No. 2014-28836. Due to changes in the scheduling of events, the surplus projected as of the third quarter may vary as of year-end; therefore, the Convention Center's operations will continue to be monitored over the coming months. Other significant variances in the Enterprise Funds to note are detailed below . Parking -Based on the Parking Enterprise Fund's FY 2022 third quarter projections, revenues are projected to exceed expenditures resulting in a projected surplus of approximately $2.2 million that would be available to be set aside for future operating or other expenditure obligations should these projections be realized at year-end. The projected surplus is attributed to a combination of factors which include Parking revenues such as meter revenues, permit revenues, and garage revenues trending above budget and the continued vacancy of existing budgeted positions due to hiring challenges that the department has been encountering . Due to the uncertainty of Parking's revenues, the surplus projected as of the Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 10 of 17 third quarter may vary as of year-end; therefore, trends will continue to be monitored in the coming months. Water and Sewer -Revenues for both the Water and Sewer Fund budgets are projected to exceed their current amended budgets by $2.2 million, or 5.7%, and $2.6 million, or 4.7%, respectively, resulting in projected surplus of $2.5 million in Water and $2 .7 million in Sewer that would be available to be set aside for renewal and replacement of Water and Sewer assets and/or future operating and other expenditure obligations should these projections be realized at year-end. This is primarily due to an increase in retail users' consumption of water and usage of sewer treatment services, which, in turn, is projected to result in an increase in the projected costs incurred by the City for water and sewer services provided by Miami-Dade County to the City that were offset by savings in other operating expenditures based on current operations. ENTERPRISE FUNDS Sanitation Sewer Storm Water Water Parking Building Convention Center FY 2022 Adopted Budget 22 ,170,000 52 ,916 ,000 3 1,911 ,000 35 ,032 ,000 43,477,000 17,449,000 27,332,000 Budget Amendment -10/13/21 0 0 0 0 0 0 0 Budget Amendment -11 /22/21 1,130,000 2,321 ,000 1,952 ,000 3,494 ,000 681 ,000 7,000 1,228,000 Budget Amendment -03/09/22 0 0 0 0 0 0 0 FY 2022 Amended Budget 23,300 ,000 55 ,237 ,000 33,863,000 38 ,526,000 44 ,158,000 17,456,000 28,560 ,000 FY 2022 Projections : Charges for Services 18,663,500 56 ,767,000 31 ,713,000 35 ,620,000 44,459 ,000 16,199,000 23,553,000 Other 4,410 ,500 1,086,000 1,862,000 5,100,000 1,725,000 1,081,000 21,665,000 FY 2022 Revenue Proiections 23 ,074 ,000 57,853,000 33 ,575,000 40,720,000 46,184,000 17,280,000 45,218,000 $ Overl(Underl Amended Budaet (226,000) 2,616,000 (288,0001 2,194,000 2,026,000 (176,000) 16,658,000 % Over/(Underl Amended Budaet -1 .0% 4 .7% -0.9% 5.7% 4.6% -1.0% 58.3% FY 2022 Expenditure Proiections 23 ,074,000 55,161,000 33 ,575,000 38 ,250 ,000 43 ,984 ,000 17 ,280,000 30,594,000 $ Over/(Under) Amended Budget (226,000) (76,000) (288,000) (276,000) (174,000) (176,000) 2,034,000 % Overl(Under) Amended Budaet -1 .0% -0 .1% -0.9% -0.7% -0.4% -1 .0% 7.1% Revenues Over/(Under) Expenditures 0 2,692,000 0 2,470,000 2,200,000 0 14,624,000 As additional information becomes available these projections will continue to be further refined . INTERNAL SERVICES FUNDS The City accounts for goods and services provided by one department to other departments citywide on a cost reimbursement basis as Internal Services Funds . Central Services, Fleet Management, Information Technology, Property Management, Risk Management (Self Insurance), Medical and Dental, and the Office of the Inspector General comprise this category of Proprietary Funds. An analysis of the actual nine-month operating revenues and expenses for the period October 1, 2021 through June 30, 2022, reveals that all Internal Services Funds have actual expenses that are less than three quarters of their current amended budgets, except for the Medical and Dental Fund, due to actual medical and dental claims expenses that were incurred during the first nine months of the fiscal year. Similar to the other category of Proprietary Funds (Enterprise Funds), this is not representative of typical trends for a full fiscal year, as there is often a lag in processing of expenditures, particularly those that are billed by outside entities for services provided. Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 11 of 17 NTERNAL SERVICE FUNDS Central Fleet Information Services Management Technology FY 2022 Adopted Budget 1,021 ,000 16,772,000 19,121 ,000 Budget Amendm ent -10/13/21 0 0 0 Budget Amendm ent -11/22/21 20,000 3,799,000 1,636,000 Bud et Amendment -03/09/22 0 0 0 FY 2022 Amended B ud et 1,041 ,000 20,571 ,000 20,757 ,000 3/4 Adopted Budget 765,750 12,579,000 14,340,750 3/4 Amended Bud et 780,750 15,428,250 15,567,750 Revenues as of 06/30/22 757,132 8,084,827 12 ,128,301 Ex enditures as of 06/30/22 696,905 9,193,158 14 ,597,809 Expenditures Above/(Below) 3/4 Amended Budget (83,845) (6,235,092) (969,941) % Variance -8.1% -30.3% -4.7% OWiceof Property Risk Medical & Inspector Dental General Management Management Insurance 1,532,000 1 1,709,000 23,325,000 41 ,543,000 0 0 0 0 534,000 536,000 495,000 0 0 0 0 0 2 ,066,000 12,245,000 23,820,000 41 ,543,000 1,149,000 8,781,750 17,493,750 31 ,157,250 1,549,500 9,183,750 17,865,000 31 ,157,250 1,149,752 7 ,736,226 18,040,296 30,323,037 1,153,366 6 ,842,091 14,884,882 31 ,698,275 (396,134) (2,341 ,659) (2,980, 118) 541 ,025 -19.2% -19.1% -12.5% 1.3% Year-end operating revenue and expenditure projections through September 30 , 2022 provide a more realistic indication of any anticipated year-end surpluses or shortfalls as of this point in time. While the actual revenues and expenses presented above are as of June 30, 2022, the year-end projections incorporate more current information that may be available. As reflected in the table below, revenues for all Internal Service Funds are projected to be equivalent to or in excess of expenditures as of year-end and all Internal Service Funds are projected to be below their current amended budgets and there are no significant variances to budget in excess of 10.0%, or $300,000. NTERNAL SERVICE FUNDS Central Fleet Information Office of Property Risk Medical& Inspector Dental Services Management Technology General Management Management Insurance FY 2022 Adopted Budget 1,021 ,000 16,772,000 19,121,000 1,532,000 11 ,709,000 23,325,000 41 ,543,000 Budget Amendment-10/13/21 0 0 0 0 0 0 0 Budget Amendment -11/22/21 20,000 3,799,000 1,636,000 534,000 536,000 495,000 0 Budget Amendment -03/09/22 0 0 0 0 0 0 0 FY 2022 Amended Budget 1,041 ,000 20,571 ,000 20,757 ,000 2,066,000 12,245,000 23,820,000 41 ,543,000 FY 2022 Projections: Charges for Services 1,005,000 16,129,000 16,173,000 1,532,000 10,308,600 21 ,8 16 ,000 0 Other 19,000 4,149,000 4,290,000 514,000 1,654,400 1,966,000 41,496,000 FY 2022 R evenue Projections 1,024,000 20,278,000 20,463,000 2 ,046,000 11 ,963,000 23,782,000 41,496,000 $ Over/lUnderl Amended Budaet (17,000) (293,000) (294,000) (20,000) (282,000) (38,000) (47,0001 % Over/(Under) Amended Budaet -1.6% -1.4% -1.4% -1 .0% -2 .3% ..0 .2% -0.1% FY 2022 Expenditu re P rojection s 1,024 ,000 20,278,000 20,463,000 2,046,000 11 ,963,000 23,782,000 4 1,496,000 $ Over/lUnderl Amended Budaet (17,000) (293,000) (294,000) (20,000) (282,000) (38,000) (47,000' % Over/(Under) Am ended Budaet -1 .6% -1.4% -1.4% -1 .0% -2.3% -0.2% -0.1% Revenues Over/lUnderl Excenditures 0 0 0 0 0 0 0 These projections will continue to be refined as additional information becomes available. SPECIAL REVENUE FUNDS Special Revenue Funds consist of revenues and expenditures which are legally restricted or committed for specific purposes, other than debt service and/or capital projects. Special Revenue Funds include Resort Tax, as well as Transportation and People's Transportation Plan (PTP) Fund operations, 7th Street Garage operations, 5th & Alton Garage operations, the Tourism and Hospitality Scholarship Program, Information and Communications Technology Fund, Education Compact Fund, Franchise Waste Haulers and Sustainability Contributions, the Residential Housing Program, Red Light Camera Program operations, Emergency 911 Fund, Miami Beach Cultural Arts Council, Normandy Shores and the City's three Security Guard Special Taxing Districts (Biscayne Point, Biscayne Beach, and Allison Island), Miami City Ballet, Art in Public Places (AIPP) operations, Tree Preservation and Commemorative Tree Trust Fund, Beachfront Concession Initiatives Program, Beach Renourishment, Resiliency, Sustainability and Resiliency, Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 12 of 17 and Biscayne Bay Protection Trust Funds, Police Unclaimed Property and Crash Report Sales Funds , Police Confiscation Trust Funds (Federal and State), Police Training and School Resources Fund, the Adopt-a-Bench Program, and the Off-Duty Services Fund . An analysis of the actual nine-month operating revenues and expenses for the period October 1, 2021 through June 30 , 2022, reveals that all Special Revenue Funds have actual expenses that are less than three quarters of their current amended budgets, except for the 5th & Alton Garage Fund, as a result of an increased level of operations from what was originally anticipated for FY 2022. Similar to other funds, it is important to note that the actuals incurred through June 30, 2022 are not always representative of trends for a full fiscal year. Year-end operating revenue and expenditure projections through September 30, 2022 provide a more realistic indication of any anticipated year-end surpluses or shortfalls as of this point in time . While the actual revenues and expenses presented above are as of June 30, 2022, the year-end projections incorporate more current information, if available. As of the third quarter of FY 2022 , revenues for all Special Revenue Funds are projected to be equivalent to or in excess of expenditures as of year-end with the exception of the Red Light Camera Fund that is subsequently explained below. Further, all Special Revenue Funds are projected to have savings at year-end , including some with significant variances to budget in excess of 10.0%, or $300,000 , except for the 5th & Alton Garage Fund , Normandy Shores Fund, and Biscayne Point and Biscayne Beach Special Taxing Districts Special Revenue Funds, which are also further detailed below. Red Light Camera Fund -This fund is projected to be 45 .0%, or $641,000, below the current amended budget and expenditures are projected to be in excess of revenues by $418,000 due to delays in the deployment and installation of an additional five red light cameras that were planned as part of the new proposed agreement, as well as revenues from the currently existing cameras trending lower than budgeted since some cameras are or are anticipated to be offline for various reasons. As a result, if this projection is realized at year-end, the $418,000 shortfall in the Red Light Camera Fund will need to be transferred to and funded by the General Fund for the current fiscal year. Red Light Camera FY 2022 FY 2022 Projected .s Amended Budget Projected Amended % O-.er I (Under) Budget Variance Re-.enues $ 1,423,000 $ 364 ,000 $ (1 ,059 ,000) -74.4% Expenditures $ 1,423 ,000 $ 782,000 $ (641,000) -45 .0% Surplus/(Shortfall) $ 0 $ (418 ,000) $ (418,000) 5th & Alton Garage Fund-This fund is projected to be 22.2%, or $150 ,000, above its current amended budget. This is primarily attributed to an increase in the level of operations taking place at this garage from what was originally anticipated for the current fiscal year as a result of COVID-19. Although this fund is projected to exceed the current amended budget, the additional expenditures are projected to be offset by additional revenues from available fund balance and the contribution from the Parking Enterprise Fund, if necessary, shou ld these projections be realized at year-end. Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 13 of 17 5th & Alton Garage FY 2022 FY 2022 Amended Budget Projected Re\€nues $ 676,000 $ 826,000 Expenditures $ 676,000 $ 826,000 Surplus/(Shortfall) $ 0 $ 0 Projected 11S Amended % O1.€r I (Under) Budget Variance $ 150,000 22.2% $ 150,000 22 .2% $ 0 Normandy Shores -The Normandy Shores budget is projected to be 4.0%, or $10,000, above the current amended budget due to unforeseen gate repairs needed. Although this fund is projected to exceed the current amended budget, the additional expenditures are projected to be offset using available fund balance, if necessary, should these projections be realized at year-end. Normandy Shores FY 2022 FY 2022 Projected 11S Amended Budget Projected Amended % O1.€r / (Under) Budget Variance Re\€nues $ 252 ,000 $ 262,000 $ 10,000 4.0% Expenditures $ 252,000 $ 262,000 $ 10,000 4 .0% Surplus/(Shortfall) $ 0 $ 0 $ 0 Biscayne Point and Biscayne Beach Special Taxing Districts -The Biscayne Point and Biscayne Beach Special Taxing Districts are projected to be 6.1%, or $14,000, and 1.7%, or $4,000, above their current amended budgets. This is primarily attributed to increases in the costs for utilities, as well as unforeseen repairs made in both guardhouses. Although these funds are projected to exceed their current amended budgets, the additional expenditures are projected to be offset using available fund balance in both funds, if necessary, should these projections be realized at year-end. Biscayne Point Special Taxing District FY 2022 FY 2022 Projected vS Amended Budget Projected Amended % O\€r I (Under) Budget Variance Revenues $ 229,000 $ 243,000 $ 14,000 6.1% Expenditures $ 229 ,000 $ 243,000 $ 14,000 6 .1% Surplus/(Shortfall) $ 0 $ 0 $ 0 Biscayne Beach Special Taxing District FY 2022 FY 2022 Projected vS Amended Budget Projected Amended % O\€r I (Under) Budget Variance Re\€nues $ 232 ,000 $ 236 ,000 $ 4,000 1.7% Expenditures $ 232 ,000 $ 236,000 $ 4,000 1.7% S urpl us/(Shortfall) $ 0 $ 0 $ 0 Other significant variances in the Special Revenue Funds to note are detailed below. E-911 and PTP -While the E-911 Fund and People's Transportation Plan (PTP) Fund projections also do not meet the previously mentioned criteria requiring a variance explanation, it is important to note that the expenditures incurred in these funds are based mostly on fees that are collected by voice communications services providers (wireless, wireless prepaid, and non -wireless) and half-cent surtax revenues collected by Miami-Dade Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 14 of 17 County that are subsequently allocated and remitted to the City annually. Revenues in both of these funds are projected to be in excess of expenditures as of year-end by $326,000 and $683,000 in the E-911 Fund and PTP Fund, respectively. Therefore, should these additional projected revenues be realized at year-end, it will be recommended by the City Administration that the budgets for these funds be amended at year-end to permit for additional allowable expenditures to be charged back accordingly from the Fire Department's General Fund operations and Transportation's Other Special Revenue Fund operations. E-911 FY 2022 FY 2022 Projected vS Amended Budget Projected Amended % O1.€r I (Under) Budget Variance Re-..enues $ 591 ,000 $ 917 ,000 $ 326 ,000 55.2% Expenditures $ 591,000 $ 591,000 $ 0 0.0% Surplus/(Shortfall) $ 0 $ 326,000 $ 326,000 People's Transportation Plan (PTP) FY 2022 FY 2022 Projected vS Amended Budget Projected Amended % O1.€r I (Under) Budget Variance Re-..enues $ 3,560,000 $ 4 ,243,000 $ 683 ,000 19.2% Expenditures $ 3 ,560 ,000 $ 3 ,560,000 $ 0 0 .0% Surplus/(Shortfall) $ 0 $ 683 ,000 $ 683,000 RESORT TAX FUND The City's Resort Tax Fund is primarily supported by taxes collected pursuant to Chapter 67-930 (Section 6) of the Laws of Florida, as amended, and Section 5.03 of the City of Miami Beach Charter, as amended. This legislation authorizes the use of Resort Taxes for the promotion of the tourism industry, which includes, but is not restricted to the following: Publicity, advertising, news bureau, promotional events, convention bureau activities, capital improvements and the maintenance of all physical assets in connection therewith; and for the payment of the reasonable and necessary expenses of collecting, handling, and processing of said tax. The Resort Tax Fund is a Special Revenue Fund that consists of three main components: (1) a 2% Resort Tax comprised of a 2% Bed Tax and 2% Food & Beverage Tax; (2) a 1 % Bed Tax for Quality of Life (QOL) capital projects, transportation initiatives, and arts and culture; and (3) a 1 % Bed Tax dedicated to the repayment of outstanding debt service for Resort Tax bonds issued as part of the most recent Convention Center renovation and expansion project, as well as funding for renewal and replacement of Convention Center assets. 2% Resort Tax Based on the first ten months of actual collections, total two percent Resort Tax revenues for FY 2022 are projected to be 37.8%, or $22 .8 million, above the current amended budget as of year- end, with the remaining months (August and September) in the current fiscal year projected at 5 .0% over FY 2019 collections. The projections for the remainder of the fiscal year are based on monthly collection trends that factor in seasonality since, historically, a large percentage of the City's resort taxes are normally collected during the winter and spring months of the year. Total FY 2022 two percent Resort Tax expenditures are projected to be 5.0%, or $3 .0 million , above the current amended budget as of year-end, primarily due to an increase in the projected Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 15 of 17 contribu t ions to the Miami Beach Visitor and Convention Authority (VCA) and Greater Miami Convention & Visitors Bureau (GMCVB) of $1.2 million and $2.4 million , respectively, since the contributions to both the VCA and GMCVB are based on a percentage of two percent Resort Tax collections that are projected to exceed the current amended budget for FY 2022 . The combined increase in the projected contributions to the VCA and GMCVB of $3.6 million for FY 2022 is, however, projected to be partially offset by savings of $272,000 in the budgeted two percent subsidy to the 1 % Resort Tax (Convention Center) that is no longer projected to be needed since projected 1 % Resort Tax revenues (Convention Center) are projected to exceed the required debt service coverage for FY 2022 and $305,000 in personnel and operating-related savings attributed primarily to several vacancies that departments are in the process of trying to fill. 1% Resort Tax (Quality of Life) The proceeds of the one percent bed tax for quality of life, as adopted through Resolution No. 2018-30512, and continuing in FY 2022, unless otherwise amended by the City Commission, are to be utilized as follows: 60% allocated for Transportation initiatives in tourist-related areas; 10% allocated equally among North Beach, Middle Beach and South Beach for capital projects that enhance Miami Beach 's tourist related areas; and 10% allocated to various arts and cultural programs. One percent bed tax revenues for FY 2022 are projected to be 52 .9%, or $6.4 million, above the current amended budget as of year-end. Concurrently, since transfers for Transportation initiatives in tourism-related areas , North, Middle , and South Beach quality of life projects, and various arts and cultural programs that are funded by the Cultural Arts Council are based directly on the proceeds of the one percent bed tax collected for quality of life , one percent Resort Tax expenditures are equally projected to be 52.9%, or $6.4 million , above the current amended budget as of year-end, of which $3.9 million is allocated to Transportation initiatives in tourism- related areas, $1.9 million allocated to North , Middle, and South Beach quality of life projects equally, and $643,500 allocated for various arts and cultural programs that are funded by the Cultural Arts Council. 1% Resort Tax (Convention Center) Lastly, the proceeds of the additional one percent bed tax levied solely for the purposes of expanding, enlarg ing, renovating, and/or improving the Miami Beach Convention Center, including debt service related thereto , as well as providing Capital Renewal and Replacement funding for the Miami Beach Convention Center, is projected to be 49 .5%, or $6.2 million, above the current amended budget as of year-end . Since the proceeds of the additional one percent bed tax must first provide for the payment of debt service and any excess , based on proceeds, be set- aside for Capital Renewal and Replacement funding for the newly renovated and expanded Miami Beach Convention Center, additional one percent bed tax expenditures are also projected to be 49.5%, or $6 .2 million, above the current amended budget as of year-end. It is important to note that the 1 % Resort Tax (Quality of Life) budget is different from the 1 % Resort Tax (Convention Center) budget due to the impact of COVID-19 on Resort Tax revenues and the City's cautiously optimistic rebound in revenues, which required the FY 2022 1 % Resort Tax (Convention Center) budget to include a $272,000 subsidy from the 2% Resort Tax to fund the required annual debt service for FY 2022 . As noted above, since the FY 2022 revenues are projected to exceed the budget, it is anticipated that the transfer from the 2% Resort Tax will not be necessary . Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 16 of 17 Total Resort Tax Overall, due to actual Resort Tax collections exceeding budget for the first ten months of the fiscal year and collections for the remaining months of the current fiscal year (August and September) projected at 5.0% over FY 2019 collections, combined Resort Tax revenues are projected to be 41. 7%, or $35.4 million , above the current amended budget as of year-end , while expenditures are projected to be 18.4%, or $15 .6 million, above the current amended budget resulting in a projected surplus of $19.8 million as of year-end , which the City Administration is recommending be set aside and/or allocated as follows: 1) $5.4 million towards the Resort Tax Reserve policy target amount of 6 months, or 50%, adopted by Resolution No . 2019-30664 2) $3.2 million for FY 2023 Spring Break Programming, as discussed and proposed during the development of the FY 2023 budget 3) $10.4 million to fund anticipated Capital Project gaps 4) $0.8 million to fund the one-time expenditure enhancements recommended for FY 2023 RESORT TAX FUND FY 2022 FY 2022 Actuals as of %Actual of Over/(Under) % Over/(Underl Pdopted Amended 06/30122 Amended Amended Amended Budget Budget Budget Budget Budget Revenues 2% Resort Tax 50,920,000 53,166,000 58,559,220 110.1% 75,885,000 22,719,000 42.7% M scell aneous Revenues 368,000 368,000 286,210 77.8% 427,000 59,000 16.0% Fund Bal ance/Retained Earnings 5,910,000 6,766,000 0 0.0% 6,766,000 0 0.0% 1% Resort Tax (QOL) 12,184,000 12,1 84,000 14,70 1,389 120.7% 18,624 ,000 6,440,000 52.9% Additional 1% Resort Tax for Convention Cen ter 12,456,000 12,456,000 14,701,389 118.0% 18,624,000 6,168,000 49.5% Total Revenues 81,838,000 84 ,940,000 88,248,208 103.9% 120,326,000 35 ,386,000 41 .7% Expenditures General Fund Contri bution 24,866,000 24,866,000 18,649,500 75.0% 24,866,000 0 0.0% Sanitation Fund Contribution 3,040,000 3,040,000 2,280,000 75.0% 3,040,000 0 0.0% Contribution to GM:VB 6,889,000 6,889,000 5,227,992 75.9% 9,285,000 2,396,000 34.8% Contribution to VCA 2,445,000 2,445,000 2,436,021 99.6% 3,643,000 1,198,000 49.0% Contribution to M . S inai 1,000,000 1,000,000 0 0.0% 1,000,000 0 0 .0% O ther O perating/Other Uses 18,758 ,000 21,820,000 18,19 1,284 83.4% 21,243,000 (577,000) -2.6% Marketing 200,000 240,000 96,888 40.4% 240,000 0 0.0% Transfer to NB , M3, S B Capital, T ransp, and Arts (QOL) 12,184,000 12,184,000 14,701,389 120.7% 18,624,000 6,440,000 52.9% Addt'I 1 % Conv. Center Debt Servce & Ca . Ren & Re I. 12,456,000 12,456,000 9,225,526 74.1% 18,624,000 6,168,000 49.5% Total Expenditures 81 ,838,000 84,940,000 70,808,599 83.4% 100,565,000 15,625,000 18.4% Excess of Revenues Over/ Under) Ex nditures 0 0 17,439,609 19,761 ,000 19,761,000 CONCLUSION All General Fund, Enterprise Funds, Internal Services Funds, and Special Revenue Funds budgets are projected to be at or below their current FY 2022 amended budgets as of year-end with revenues projected to be equivalent to or in excess of expenditures, except for the Convention Center Enterprise Fund, as well as the Red Light Camera, 5th & Alton Garage, Normandy Shores, and Biscayne Point and Biscayne Beach Special Taxing Districts Special Revenue Funds. These projected shortfalls and overages w ill be closed using a mix of sweeping savings from other funds and use of available fund balance, if realized at year-end . The assumptions utilized in the third quarter projections will continue to be proactively monitored between now and the development of the year-end projections, as well as during the finalization of the FY 2023 budgets, and any material variances will be disclosed and discussed at upcoming Finance and Economic Resiliency Committee (FERC) and/or City Commission meetings. ATH/JW/TOS Letter to Commission -Fiscal Year 2022 Third Quarter Analysis Page 17 of 17 EXHIBIT A CITY OF MIAMI BEACH FY 2022 GENERAL FUND 3RD QUARTER FY 2022 FY 2022 Actuals as of Adopted Amended 06/30/22 Budget Budget REVENUES Ad Va lorem Taxes 196 ,201 ,000 196,201,000 189,067,100 Ad Va lorem Taxes -Pay-As-You-Go Capital 2,616,000 2,616,000 2,616,000 Ad Valorem Taxes -Capital Renewal & Replacement 815,000 815,000 815,000 Ad Valorem Taxes -Normandy Shores 252 ,000 252,000 252,000 Other Taxes 23 ,986 ,000 23,986,000 15,895,725 Licenses and Permrts 15 ,054,000 15,888,000 18 ,111,674 Intergovernmental 11 ,598,000 12,066,000 9,431,409 Charges for Services 13 ,192 ,000 13 ,192,000 13 ,535 ,313 Fines and Forfeitures 966,000 966,000 2,054 ,815 Interest 2 ,6 62 ,000 3,024,000 3,847 ,782 Rents and Leases 6 ,091 ,00 0 6 ,288,0 00 5,29 1,826 Mscellaneous 14,196,000 14,702,000 22,135,146 Other-Resort Tax Contribution 24,866,000 24,866,000 18 ,649 ,500 Other-Non-Operating Revenues 14,214,000 14 ,214 ,000 10,261,438 Fund Balance/Retained Earnings 3,797,000 13,600,000 0 American Rescue Plan Act (ARPA) Funds 23 ,600 ,000 23,600 ,000 11 ,777,709 TOT AL REVENUES 354,106,000 366,276,000 323 ,742,437 EXPENDITURES Mayor & Commission 2,644,000 2 ,644 ,000 1,909,115 City Manager 4,858 ,000 5,078,000 3,297,945 Marketing and Communications 2,3 56,000 2,356 ,000 1,660,138 Office of Management and Budget (prev. OBPI} 1,507 ,000 1,528 ,000 986,639 Org. Dev Peformance Initiatives 1,701,000 2 ,118,000 684,579 Finance 6 ,526,000 6,537,000 4,620,694 Procurement 2,800 ,000 2 ,857,000 1,891,086 Human Resources/La ber Relations 2,926 ,000 2,954,000 2,064,370 City Clerk 1,802 ,000 1,860,000 1,239,167 City Attorney 6 ,160,000 6,603,000 4,214 ,972 Housing & Communrty Services 3,538,000 4 ,075,000 1,934,681 Planning 5 ,014,000 6 ,085,000 3,633,933 Environment & Sustainability 1,30 0 ,000 1,349,000 718,866 Tourism and Culture 3,445 ,000 3,467 ,000 2,076,019 Economic Development 1,578 ,000 1,652,000 805,093 Code Compliance 6 ,550 ,000 6,585,000 4,687 ,568 Parks & Recreation (in clud ing Golf courses) 38,632,000 39,057,000 23,34 1,168 Property Management 2,502,000 2 ,518,000 1,625,026 Public Works 15 ,001 ,000 15 ,222,000 8,609 ,1 91 Capital Improvement Projects 5 ,752 ,000 5 ,840,000 3,8 77,290 Police 121 ,2 29 ,000 124,836,000 87 ,373,426 Fire 95 ,995 ,000 97,557,000 70,705,689 Citywide (i ncl. Operating Contingency) 15,182 ,000 18 ,390,000 7,257,135 Normandy Shores 252,000 252,000 0 Capital Renewal & Replacement 815 ,000 815,000 0 Info & Comm Technology Fund 300 ,000 300,000 0 Pav-As-You-Go Caortal Fund 3,741 ,000 3,741,000 0 TOTAL EXPENDITURES 354,106,000 366,276,000 239,213,788 EXCESS REVENUES OVER/(UNDER) EXPENDITURES 0 0 84,528,649 % Actual of I Over/(Under) "' Over/(Under) Amended . Amended Amended Budget ... Budget Budget 96.4% 196,201,000 0 0 .0% 100.0% 2,616,000 0 0 .0% 100.0% 815 ,0 00 0 0 .0% 100.0% 252 ,0 00 0 0 .0% 66 .3% 25,405,000 1,419,000 5.9% 1140% 21,217,000 5 ,3 29 ,000 33.5% 78.2% 13 ,963,000 1,897,000 15 .7% 102.6% 15,479,000 2,287,000 17 .3% 212.7% 969,000 3,000 0 .3% 127 .2% 4,386 ,000 1,3 62 ,000 45.0% 1.0% 7,043 ,000 755 ,000 12 .0% 150.6% 16 ,127 ,000 1,425,000 9.7% 75.0% 24 ,866,000 0 0 .0% 72 .2% 14 ,221 ,000 7,000 0.0% 0.0% 13 ,600 ,000 0 0.0% 49.9% 23 ,600 ,000 0 0 .0% 88.4% 380,760,000 14,484,000 4 .0% 72 .2% 2,626 ,000 (18,000) -0.7% 64 .9% 4,807 ,000 (27 1,000) -5.3% 70.5% 2,339 ,000 (17,000) -0 .7% 64.6% 1,402 ,000 (126 ,000 ) -8.2% 32.3% 2,057 ,000 (61 ,000) -2 .9% 70.7% 6,392 ,000 (145 ,000 ) -2 .2% 66.2% 2,670,000 (187,000) -6.5% 69.9% 2,878 ,000 (76,000) -2 .6% 66 .6% 1,746 ,000 (114 ,000) -6.1% 63 .8% 6,211 ,000 (392,000) -5.9% 47.5% 3,65 1,000 (424,000) -10.4% 59.7% 5,839 ,000 (246 ,000) -4 .0% 53 .3% 1,300,000 (49,000) -3.6% 59.9% 3,432,000 (3 5,000) -1.0% 48.7% 1,633 ,000 (19,000) -1 .2% 71 .2% 6,425,000 (160,000) -2.4 % 59 .8% 38,112 ,000 (945,000) -2.4% 64 .5% 2,464 ,000 (54,000) -2.1% 56 .6% 14 ,533 ,000 (689,000) -4.5% 66.4% 5,511 ,0 00 (329 ,000) -5.6% 70.0% 124,396 ,0 00 (440,000) -0.4% 72.5% 97,269,000 (288 ,000) -0 .3% 39.5% 18,102,000 (288,000) -1.6% 0.0% 252,000 0 0 .0% 0.0% 815 ,000 0 0.0% 0.0% 300,000 0 0 .0% 0.0% 3,741,000 0 0 .0% 65.3% 360,903,000 (5,373,000) -1.5% 23.1% 19,857,000 19,857,000